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Dec 31, 2023

Bentley Systems Q4 2023 Earnings Report

Bentley Systems reported an increase in total revenue and net income, driven by strong subscription growth and strategic investments in AI-driven asset analytics.

Key Takeaways

Bentley Systems announced its Q4 and full year 2023 results, showcasing an 8.3% increase in total revenues for the quarter, reaching $310.6 million. The company's ARR grew by 12.5%, and it reported a net income per diluted share of $0.54, significantly up from $0.08 in the same period last year. The company's financial outlook for 2024 reflects confidence in sustaining consistent organic growth and operating margin improvement.

Total revenues increased by 8.3% year-over-year, reaching $310.6 million.

ARR grew by 12.5%, demonstrating strong recurring revenue performance.

Net income per diluted share rose to $0.54, a substantial increase from $0.08 in the previous year.

The company's 2024 financial outlook anticipates continued organic growth and improved operating margins.

Total Revenue
$311M
Previous year: $287M
+8.3%
EPS
$0.2
Previous year: $0.19
+5.3%
ARR
$1.17B
Previous year: $1.04B
+13.3%
Constant Currency ARR Growth
12.5%
Previous year: 15%
-16.7%
Dollar-Based Net Retention Rate
109%
Previous year: 110%
-0.9%
Gross Profit
$243M
Previous year: $225M
+8.1%
Cash and Equivalents
$68.4M
Previous year: $71.7M
-4.6%
Free Cash Flow
$81M
Previous year: $30.6M
+164.9%
Total Assets
$3.32B
Previous year: $3.17B
+4.9%

Bentley Systems

Bentley Systems

Bentley Systems Revenue by Segment

Forward Guidance

The company is sharing the following financial outlook for the full year 2024: Total revenues in the range of $1,350 million to $1,375 million and constant currency growth of 10% to 12%; Constant currency ARR growth rate (business performance, including programmatic acquisitions) of 10.5% to 13%; Adjusted OI w/SBC margin annual improvement of approximately 100 basis points; Effective tax rate of approximately 20%; Cash flow from operations representing a conversion rate from Adjusted EBITDA of approximately 80%; and Capital expenditures of approximately $22 million.

Positive Outlook

  • Total revenues in the range of $1,350 million to $1,375 million and constant currency growth of 10% to 12%
  • Constant currency ARR growth rate (business performance, including programmatic acquisitions) of 10.5% to 13%
  • Adjusted OI w/SBC margin annual improvement of approximately 100 basis points
  • Effective tax rate of approximately 20%
  • Cash flow from operations representing a conversion rate from Adjusted EBITDA of approximately 80%

Revenue & Expenses

Visualization of income flow from segment revenue to net income